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As U.S. Households Save, Economy Sputters

By

Kelly Evans

August 29, 2011

"Delay and pray" is not a viable fix for the household sector's woes. Indeed, it may only be making things worse.

In a marked shift from their borrow-and-spend behavior during the boom, U.S. households are now by and large prioritizing saving and debt reduction. On Monday, the Commerce Department is to release July figures likely to show the personal saving rate, or proportion of after-tax monthly income unspent, in the 5%...